Legal Library: Cases and Proceedings

The Federal Trade Commission sued 7-Eleven, Inc and its parent company, Seven & i Holdings Co., Ltd., alleging the convenience store chain violated a 2018 FTC consent order by acquiring a fuel outlet in St. Petersburg, Fla. without providing the Commission prior notice.

On December 8, 2025, the FTC announced that 7-Eleven, Inc. and its parent company, Seven & i Holdings Co., Ltd., (collectively 7-Eleven) will pay $4.5 million to settle the Commission's lawsuit. 

The Federal Trade Commission sued Zillow and Redfin over an unlawful agreement that eliminates Redfin as a competitor in the market for placing advertising of rental housing on internet listing services (ILSs)—the websites that millions of Americans use to find their next rental home. The complaint alleges that in February 2025, Zillow and Redfin entered into an illegal agreement to dismantle Redfin as a competitor in the ILS advertising market for multifamily rental properties.

The FTC has filed a lawsuit against an online business opportunity scheme that it alleges has falsely claimed its “cutting edge” AI-powered tools would help consumers quickly earn thousands of dollars a month in passive income by opening online storefronts. According to the complaint, the scheme has defrauded consumers of at least $25 million.

According to the FTC’s complaint, the operators of the scheme charge consumers tens of thousands of dollars to start online stores on ecommerce platforms such as Amazon, Walmart, Etsy, and TikTok, while also requiring them to spend tens of thousands more on inventory. Ascend’s advertising content claimed the company was a leader in ecommerce, using proprietary software and artificial intelligence to maximize clients’ business success.

The operators of Ascend Ecom, an online business opportunity that allegedly cost consumers millions of dollars, will be banned from selling business opportunities and required to turn over assets to the Federal Trade Commission under the terms of a proposed court order.

As a result of a Federal Trade Commission lawsuit, a federal court has temporarily halted the operations of a wide-ranging business opportunity and credit repair scam that has operated under the name “Growth Cave” since at least 2020.

The FTC’s complaint against the operation and its owners and officers, Lucas Lee-Tyson, Osmany Batte (also known as “Ozzie Blessed”), and Jordan Marksberry, alleges that the Growth Cave operation has taken approximately $50 million from consumers using false promises of huge income.

In May 2025, the FTC filed an amended complaint in this case, adding two defendants based on information the FTC learned after the original filing.

The amended complaint names LLT Research as a new defendant in the case and adds as a relief defendant Friendly Solar, Inc. In January 2026, the FTC announced court orders with all defendants settling the Commission’s complaint.

The Federal Trade Commission and the State of Colorado are taking action against Greystar, the nation’s largest multi-family rental property manager, for deceiving consumers about monthly rent costs by tacking on numerous mandatory fees on top of advertised prices.

According to the complaint filed by the FTC and Colorado, these hidden fees have cost consumers living in Greystar properties hundreds of millions of dollars since at least 2019, and consumers often have not discovered the fees until after they have signed a lease or moved in. 

Greystar agreed to pay $23 million to the FTC and $1 million to the State of Colorado to resolve the allegations. 

The Federal Trade Commission is taking action against a Georgia-based debt collector that tricked consumers into paying more than $7.6 million in bogus debt by threatening them with jail time, harassing their family members, and other unlawful actions.

In response to a federal court complaint filed against Global Circulation, Inc. (GCI) and its owner, Kenneth Redon, III, the court agreed to temporarily halt the company’s operation and ordered it to turn its assets over to a court-appointed receiver.

In 2025, the FTC filed an amended complaint alleging that GCI and Redon falsely claimed affiliation with specific lenders to trick consumers into paying, a violation of the FTC’s Impersonation Rule.

At the same time, the FTC filed a proposed settlement order that would permanently ban GCI and Redon from the debt collection business. 

The Federal Trade Commission is taking action to stop Lurn, a Maryland-based online business coaching seller, from making unfounded claims that consumers can make significant income by starting an array of online businesses. The company, its CEO Anik Singal, and spokespeople Tyrone Cohen and David Kettner have agreed to court orders that will require them to stop their unlawful practices, and require Lurn and Singal to turn over $2.5 million to the FTC to be used to refund money to consumers they harmed.

The Federal Trade Commission is sending more than $2.4 million in refunds to consumers who paid for Lurn’s business consulting programs and were deceived about the amount of money they could make from these services. 

The Federal Trade Commission is taking action against DK Automation and its owners, Kevin David Hulse and David Shawn Arnett for using unfounded claims of big returns to entice consumers into moneymaking schemes involving Amazon business packages, business coaching, and cryptocurrency. The FTC’s complaint alleges that the defendants promised consumers that they could “generate passive income on autopilot” when the truth was that few consumers ever made money from these schemes.

A proposed court order would require the defendants to turn over $2.6 million to be used to refund consumers harmed by their deception, as well as requiring them to stop their deceptive earnings pitches and follow the law.

The Federal Trade Commission is sending $2.8 million in refunds to consumers who were harmed by DK Automation and its owners, Kevin David Hulse and David Shawn Arnett, who used unfounded claims of big returns to entice consumers into moneymaking schemes involving Amazon and Walmart business packages, business coaching, and cryptocurrency.

As a result of a Federal Trade Commission lawsuit, a federal court has temporarily shut down a business opportunity scheme that lured consumers to invest $22 million in online stores, using unfounded claims about income and profits. The operators of Automators also claimed to use artificial intelligence to ensure success and profitability for consumers who agreed to invest with Automators.

In addition to offering consumers high return as “passive investors” in profitable e-stores, Automators, which previously used the names Empire and Onyx Distribution, also offered to teach consumers how to successfully set up and manage e-stores themselves using a “proven system” and the powers of artificial intelligence.

The owners of a money-making scheme that claimed to use artificial intelligence to boost earnings for consumers’ e-commerce storefronts have agreed to surrender millions in assets to settle the FTC’s case against them. In addition, all the businesses and two of their owners face a lifetime ban on selling business opportunities or coaching programs involving ecommerce stores.

In a case first filed in January 2020, the FTC alleged that Success By Health and its executives James “Jay” Dwight Noland, Jr., Lina Noland, Scott A. Harris, and Thomas G. Sacca were operating an “instant coffee” pyramid scheme that used false promises of wealth and income to entice thousands of consumers to join.

The amended complaint alleges that the defendants were operating an additional pyramid scheme known as VOZ Travel. According to the amended complaint, the defendants sold consumers VOZ Travel “memberships” for at least $1,000 each. In exchange, they allegedly promised consumers access to a discount travel booking platform and the ability to earn rewards for recruiting other consumers to buy memberships. The complaint alleges that the defendants told consumers that some VOZ Travel members would be “making $1.53 [million] per year.”

7-Eleven, Inc. and Marathon Petroleum Corporation have agreed to divest retail fuel assets used to sell gasoline and diesel fuel in 293 local markets across 20 states, to settle Federal Trade Commission charges that 7-Eleven’s acquisition of Marathon’s Speedway subsidiary violated federal antitrust laws. The complaint alleges that the acquisition will harm competition for the retail sale of fuel in 293 local markets across Arizona; California; Florida; Illinois; Indiana; Kentucky; Massachusetts; Michigan; North Carolina; New Hampshire; Nevada; New York; Ohio; Pennsylvania; Rhode Island; South Carolina; Tennessee; Utah; Virginia, and West Virginia. In addition to the divestitures, the proposed order prohibits 7-Eleven from enforcing any noncompete provisions as to any franchisees or employees working at or doing business with the divested assets. On November 10, 2021, the Commission announced the final consent agreement in this matter.

The Federal Trade Commission sued 7-Eleven, Inc and its parent company, Seven & i Holdings Co., Ltd., alleging the convenience store chain violated a 2018 FTC consent order by acquiring a fuel outlet in St. Petersburg, Fla. without providing the Commission prior notice.

The Federal Trade Commission sued Superior Products International II, Inc., and its principal Joseph Pritchett, alleging they make false or unsubstantiated R-value and energy savings claims about their architectural coatings products. In July 2020, the FTC sued four companies that sell paint products used to coat buildings and homes, alleging that they deceived consumers about their products’ insulation and energy-savings capabilities. In complaints filed in federal court, the FTC charged that the companies falsely overstated the R-value ratings of the coatings, making deceptive statements about heat flow and insulating power.  The FTC announced a summary judgment against the defendants in November 2022.

The FTC alleged that the Florida-based scam falsely told consumers that by selling memberships in the defendants’ programs, consumers were likely to earn large sums of money. For example, the website stated, “Consumers will earn between $500 and $12,500 per sale,” and “Every time one of our professionals closes a sale on your behalf, we will send you a huge commission check right to your doorstep.” The defendants allegedly charged consumers a substantial amount of money, ranging from $1,000 to $25,000. The complaint states, however, that the vast majority of consumers who paid the defendants never earned substantial income, and in fact many consumers earned nothing.

The Federal Trade Commission is sending 1,064 checks totaling more than $542,000 to consumers who were harmed by the bogus business and investment scheme.

Multi-level marketer AdvoCare International, L P and its former chief executive officer agreed to pay $150 million and be banned from the multi-level marketing business to resolve Federal Trade Commission charges that the company operated an illegal pyramid scheme that deceived consumers into believing that they could earn significant income as "distributors" of its health and wellness products. Two top promoters also settled charges that they promoted the illegal pyramid scheme and misled consumers about their income potential, agreeing to a multi-level marketing ban and a judgment of $4 million that will be suspended when they surrender substantial assets.

The Federal Trade Commission charged three individuals and nine businesses with bilking more than $125 million from thousands of consumers with a fraudulent business education program called MOBE (“My Online Business Education”). A federal court halted the scheme and froze the defendants’ assets at the FTC’s request. The FTC alleged that the defendants falsely claim that their business education program will enable people to start their own online businesses and earn substantial income. They claim to have a “proven” 21-step system for making substantial sums of money quickly and easily from internet marketing, which they promise to provide to those who join their program. Most people who buy into the program and pay for the expensive memberships are unable to recoup their costs, and many experience crippling losses or mounting debts, including some who have lost more than $20,000, the FTC alleged. The defendants agreed to pay more than $17 million as part of settlements with the Federal Trade Commission.

In December 2016, DeVry University and its parent company agreed to a $100 million settlement of a Federal Trade Commission lawsuit alleging that they misled prospective students with ads that touted high employment success rates and income levels upon graduation. Under the settlement, DeVry was ordered to pay $49.4 million in cash which was distributed to qualifying students who were harmed by the deceptive ads, as well as $50.6 million in debt relief.

The Federal Trade Commission filed a law enforcement action to block U.S. semiconductor chip supplier Nvidia Corp.’s $40 billion acquisition of UK-based semiconductor design firm Arm Ltd., the largest transaction in the history of the semiconductor industry. The FTC’s action seeks to preserve competition in markets for computer chips used in datacenters and in automotive advanced driver assistance systems. The complaint named Nvidia Corp., Arm Ltd., and Arm owner Softbank Group Corp. In February 2022, Nvidia Corp. announced that it had terminated its proposed acquisition of Arm Ltd. (Arm) from SoftBank Group Corp, and the Commission dismissed the complaint.